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WorksheetsAML Audit Quiz
Total questions: 20
Worksheet time: 10mins
Which of the following is NOT a type of AML audit?
Full Scope Audit
Limited Scope Audit
Look Back Audit
Performance Audit
In the planning phase of an AML audit, which activity is typically performed first?
Draft report preparation
Gathering information about the audited entity
Choosing sample data for testing
Implementing remedial actions
What is the purpose of the audit scope and objectives being agreed upon by both auditor and auditee?
To ensure testing is completed quickly
To define boundaries and goals of the audit
To avoid remedial actions
To limit reporting requirements
Which type of AML audit focuses on a specific compliance area?
Full Scope Audit
Limited Scope Audit
Horizontal Audit
Look Back Audit
In AML audits, what is the Look Back audit primarily used for?
Forward-looking risk assessment
Reviewing past transactions for suspicious activity
Internal policy creation
Regulator licensing approval
During the fieldwork phase, what do auditors primarily test?
Stakeholder responses
AML controls
Remedial action plans
Legal contracts
In AML fieldwork, how do auditors determine control effectiveness?
By reviewing regulator reports only
By randomly choosing any available data
By sampling data from each function’s population
By interviewing only senior management
Why should AML auditors discuss findings with the audited entity?
To avoid including minor issues in reports
To confirm the accuracy of findings
To reduce the time spent on reporting
To skip the draft report step
What happens if the audit risk assessment is found to be inadequate?
The audit is canceled
The audit scope may be expanded
Remedial actions are delayed
A Look Back audit is automatically triggered
Which phase involves preparing and distributing a preliminary report?
Planning phase
Fieldwork phase
Reporting phase
Remediation phase
Who typically reviews the draft audit report before it becomes final?
Regulators only
Only the auditor
Relevant stakeholders
Internal HR department
After the final report is issued, what follows?
Audit scope expansion
Fieldwork retesting
Implementation of the remedial action plan
Risk assessment workshops
How is the progress of remedial actions monitored?
Via continuous regulator supervision
Through periodic updates to audit stakeholders
By closing the audit file immediately
By outsourcing to a third-party consultancy only
What does a Full Scope Audit cover?
Only compliance policy documents
A specific business function
All areas of AML compliance
Only high-risk transactions
Which type of audit compares AML processes across multiple entities or units?
Vertical Audit
Horizontal Audit
Look Back Audit
Limited Scope Audit
What is the main focus of a Vertical Audit in AML compliance?
Reviewing one process end-to-end within one unit
Comparing similar processes across multiple units
Reviewing only high-value transactions
Testing regulator audit reports
Why is the audit agenda sent to the auditee in advance?
To allow preparation for audit testing
To ensure that no findings are reported
To shorten reporting timelines
To meet regulator deadlines only
In which phase is the remedial action plan validated?
Planning phase
Fieldwork phase
Reporting phase
Post-audit follow-up
Which of these is an output of the reporting phase?
Sampling methodology
Preliminary report
Audit scope agreement
Data collection requests
Which best describes the purpose of an AML audit?
To identify and punish offenders
To ensure compliance with AML regulations and assess control effectiveness
To reduce business costs
To create marketing material
